An auditor forms an early view that a client's inventory is fairly stated and then gives more weight to evidence that supports that view than to evidence that conflicts with it. Which bias does this describe?
Answer and explanation
Correct answer: C. Confirmation bias
- Step 1: The auditor favours evidence that agrees with an existing belief.
- Step 2: That is confirmation bias.
Answer
Confirmation bias.
Why not the others: Anchoring is relying too heavily on an initial figure, such as the prior year, but the scenario describes favouring supporting evidence. Selection bias concerns how data is chosen, not how it is weighed. Availability bias concerns events that are easy to recall.
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